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Council restores full 1% local income-tax credit after narrow vote
Summary
The Vermilion City Council voted to amend local tax code and restore the full 1% credit for taxes paid to other municipalities, a measure supporters said returns previously diverted revenue to local taxpayers while critics warned it could reduce funds available for streets and other projects.
The Vermilion City Council voted on ordinance 2025-12 Wednesday to amend the city codified ordinances dealing with credit for tax paid to other municipalities and to reestablish a full 1% credit for Vermilion residents who work outside the city.
Supporters said the change returns a tax credit that had been reduced in prior years; opponents said restoring the credit could reduce revenue available for street repairs and other projects. Councilman Holmes said he opposed the ordinance because it removed a layer of council oversight and would divert funds now used on infrastructure, saying, “I’m gonna vote no just for that reason.”
The measure was introduced on…
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